Restructuring

2012 Restructuring Activities

In 2012, in response to softening demand in certain of its businesses in the second half of 2011, the Company initiated significant restructuring programs with the intent to optimize its cost structure and bring manufacturing capacity in line with demand. At December 31, 2012, the Company had substantially completed its productivity savings restructuring program.

The following table summarizes restructuring information by type of cost:



	Workforce Reductions			Site Closure Costs			Other Projects		Total
Restructuring costs expected to be incurred	$	25		$	9		$	1	$	35
Cumulative restructuring costs incurred through December 31, 2012	$	22		$	9		$	—	$	31

Accrued liability at December 31, 2011	$	6		$	—		$	—	$	6
Restructuring charges	16			9			—		25
Payments	(13		)	(9		)	—		(22		)
Accrued liability at December 31, 2012	$	9		$	—		$	—	$	9

Workforce reduction costs primarily relate to non-voluntary employee termination benefits and are accounted for under the guidance for nonretirement postemployment benefits or as exit and disposal costs, as applicable. During the year ended December 31, 2012 charges of $25 were recorded in “Business realignment costs” in the Consolidated Statements of Operations. At December 31, 2012, the Company had accrued $9 for restructuring liabilities in “Other current liabilities” in the Consolidated Balance Sheets.

The following table summarizes restructuring information by reporting segment:



	Epoxy, Phenolic and Coating Resins			Forest Products Resins			Corporate and Other			Total
Restructuring costs expected to be incurred	$	13		$	20		$	2		$	35
Cumulative restructuring costs incurred through December 31, 2012	$	12		$	19		$	—		$	31

Accrued liability at December 31, 2011	$	1		$	2		$	3		$	6
Restructuring charges (releases)	11			17			(3		)	25
Payments	(5		)	(17		)	—			(22		)
Accrued liability at December 31, 2012	$	7		$	2		$	—		$	9